Analysis of Corporate Tax Compliance Behaviour Among SMEs in Akure, Ondo State

Tax compliance by small and medium enterprises is a major determinant of government revenue and fiscal policy effectiveness, and examining compliance behaviour among SMEs in Akure, Ondo State, South West Nigeria, provides evidence for tax authority outreach strategy. This study analysed corporate tax compliance behaviour among 160 registered SMEs in Akure, Ondo State, using structured questionnaires administered to business owners and finance officers. Tax compliance was assessed by self-reported filing regularity, accuracy of tax returns, and payment timeliness. Determinants analysed included tax knowledge, perceived tax fairness, tax authority enforcement perception, peer compliance behaviour, and business formalisation level. Logistic regression and descriptive analysis were employed. Results showed that tax knowledge was the strongest positive predictor of compliance (OR = 3.8, p < 0.001). Perceived fairness of the tax system was significantly positively associated with voluntary compliance (OR = 2.6, p < 0.01). Enforcement perception had a stronger compliance effect among mid-sized SMEs than micro-enterprises. Peer compliance behaviour was a significant predictor for market-based businesses (OR = 2.1, p < 0.05). Overall compliance rate was 48% for statutory filing deadlines. Knowledge gaps were identified as the primary compliance barrier in 61% of non-compliant SMEs. The study concludes that tax education and simplification of filing procedures are the most cost-effective compliance improvement strategies for the Federal Inland Revenue Service in Akure, and recommends a dedicated SME tax education programme conducted in partnership with the Ondo State Chamber of Commerce. Keywords: tax compliance, SMEs, Akure, Ondo State, Federal Inland Revenue Service